Loading...
HomeMy WebLinkAboutJSA Downtown Shop Lease #2 - 10.2.2023BUSINESS PROPERTY LEASE This Business Property Lease (the "Lease") is made and entered into on October 1, 2023 by and between JSA Development, LLC (the "Landlord"), whose address for the purpose of this Lease is 315 E. 5th Street, Waterloo, Iowa, 50703, City of Waterloo (the "Tenant"), whose address for the purpose of this Lease is 1101 Campbell St. Waterloo, Iowa, 50701. 1. PREMISES AND TERM. The Landlord, in consideration of the rents herein reserved and of the agreements and conditions herein contained, on the part of the Tenant to be kept and performed, leases unto the Tenant and Tenant hereby rents and leases from Landlord, according to the terms and provisions herein, the following described real estate, situated in Black Hawk County, Iowa, to with the improvements thereon and all rights, easements, and appurtenances thereto belonging, for a term beginning October 1, 2023 (the "Start Date") and continuing until and including September 30, 2026 upon condition that the Tenant pays rent therefor, and otherwise performs as provided in this Lease. The first rent payment is due at lease inception. 2. RENTAL. (a) BASE RENT. Tenant agrees to pay to Landlord as base rental (the "Base Rent") for said term, the base sum of $1,125 per month for the first twelve months due in advance, on or before the first day of each month during the Lease term. The first month's rent payment is due upon execution of this Lease. October 1, 2024 — September 30, 2025 - $1,158.75 October 1, 2025 — September 30, 2026 - $1,193.51 (b) SECURITY DEPOSIT. In addition to the above monthly rentals, Tenant shall also pay a security deposit in the amount of $0, due and payable in full upon execution of this Lease. (c) BASE RENT ADJUSTMENT. In the event Tenant exercises one ore more renewal options, the Base Rent shall be adjusted every year based upon 100% of the increase of the cost of living in relation to the Base Rent. Such increase shall be determined by utilizing the Consumer Price Index for All Urban Consumers (CPI-U) published monthly by the Bureau of Labor Statistics of the U.S. Department of Labor comparing the month of December one year earlier and the current month of December. Not withstanding the foregoing, each annual Base Rent increase shall be capped at 3%. (d) OTHER. All sums shall be paid at the address of Landlord, as above designated, or at such other place as the Landlord may, from time to time, previously designate in writing. Any payment which is not paid within five days after it becomes due shall be subject to an administrative fee of $50.00. In addition to the administrative fee, any such payments delinquent for more than five days shall draw interest at 18% per annum, compounded monthly, from the due date, until paid. 3. POSSESSION. Tenant shall be entitled to possession on the first day of the term of this Lease, and shall yield possession to the Landlord at the time and date of the close of this Lease term, except as herein otherwise expressly provided. Should Landlord be unable to give possession on said date, Tenant's only damages shall be a rebating of the pro rata rental. 4. USE OF PREMISES. Tenant covenants and agrees during the term of this Lease to use and to occupy the leased premises only for activities and purposes consistent with and incidental to operation of a retail and wholesale vintage furniture and related items store, or such other lawful use to which Landlord may give its prior written consent. Landlord has not reviewed zoning or other applicable legal requirements or limitations imposed by any local, state, or federal governmental authority that may affect Tenant's use of the premises, and Landlord makes no representation or warranty that the premises is suitable for Tenant's intended use. Tenant shall conduct its own review of applicable law and shall be solely responsible for meeting all legal requirements, including but not limited to building permits, licensure, or governmental approval. 5. QUIET ENJOYMENT. Landlord covenants that its estate in said premises is fee simple and that the Tenant on paying the rent herein reserved and performing all the agreements by the Tenant to be performed as provided in this Lease, shall and may peaceably have, hold and enjoy the demised premises for the term of this Lease free from molestation, eviction or disturbance by the Landlord or any other persons or legal entity whatsoever. Landlord shall have the right to mortgage all of its right, title, and interest in said premises at any time without notice, subject to this Lease. 6. CARE AND MAINTENANCE OF PREMISES. Each party shall perform its responsibilities of repair and maintenance to the end that the premises will be kept in a safe and serviceable condition. Neither party will permit nor allow the premises to be damaged or depreciated in value by any act, omission, or negligence of itself, its agents or employees. (a) PROPERTY CONDITION. Tenant takes said premises in their present condition except for such repairs and alterations as may be expressly herein provided. (b) LANDLORD'S DUTY OF CARE AND MAINTENANCE. Landlord will replace and repair the structural parts of the building, which for purposes of this Lease shall mean the foundation, exterior walls, load bearing components of interior floors and walls (but not the surface of wood floors or other coverings for floors or walls. Glass in doors or windows Landlord will be responsible for unless tenant's staff has damaged the glass in doors or windows), the roof and all sewers, pipes, wiring, and electrical fixtures outside of the structure that are not adapted solely for Tenant's use. 7. END OF TERM. (a) This Lease shall terminate upon expiration of the original term or any renewal term. (b) SURRENDER OF PREMISES. Tenant agrees that upon the termination of this Lease it will surrender, yield up and deliver the leased premises in good and clean condition, except the effects of ordinary wear and tear and depreciation arising from lapse of time, or damage not covered by insurance. (c) REMOVAL OF PROPERTY. At the expiration of the term of this Lease, Tenant may remove any equipment and trade fixtures which Tenant has paid for and installed in the leased premises; provided that Tenant repairs any and all damages caused by removal; provided further that Tenant has fully satisfied all obligations of payment to Landlord under this Lease and any separate agreement whereby Landlord has furnished financing for Tenant's personal property, leasehold improvement costs, and other start-up, capital, or operational expenses of Tenant's business upon the leased premises; and further provided that Tenant is not in default under this Agreement or any other agreement with Landlord and if said property is not the subject of a separate security agreement with Landlord. For purposes of this Lease, sinks, toilets, and other plumbing fixtures do not constitute trade fixtures. Any and all non -trade fixtures and leasehold improvements made by Tenant or Landlord shall remain on the premises as the property of Landlord. (d) HOLDING OVER. Continued possession beyond the expiratory date of the term of this Lease by the Tenant, coupled with the receipt and acceptance of the specified rental by the Landlord (and absent a written agreement by both parties for an extension of this Lease, or for a new lease) shall constitute a month -to -month extension of this Lease. 8. ASSIGNMENT AND SUBLETTING. Tenant may not assign this Lease or sublet the premises or any part thereof without the Landlord's prior written permission, which shall not be unreasonably withheld. Notwithstanding anything to the contrary in this paragraph, Tenant may assign this Lease to the surviving entity in connection with any corporate merger, consolidation or reorganization to which Tenant is a party. Landlord's interest in this Lease shall be automatically assigned to any person or entity that may, in connection with a sale of the premises, succeed to Landlord's ownership interest in the premises. 9. PROPERTY TAXES. Landlord shall pay all real estate taxes and special assessments with respect to the premises. Tenant shall timely pay all taxes, assessments, or other public charges levied or assessed by lawful authority against its personal property on the premises during the term of this Lease. Each party reserves the right to protest any assessment of taxes. 10. INSURANCE. (a) Landlord and Tenant will each keep its respective property interests in the premises and its liability in regard thereto, and the personal property on the premises, reasonably insured against hazards and casualties: that is, fire and those items usually covered by extended coverage; and Tenant will procure and deliver to Landlord a certification from the respective insurance companies to that effect. Such insurance shall be made payable to the parties hereto as their interests may appear, except that Tenant's share of such insurance proceeds are hereby assigned and made payable to the Landlord but only to the extent necessary to secure rent or other obligations then due and owing by Tenant to Landlord. To the extent permitted by its policy, Tenant waives all rights of recovery of insurance payments against Landlord. 2 (b) Tenant further covenants and agrees that it will at its own expense procure and maintain combined single limit liability, bodily injury, and property damage insurance in the amount of not less than $1,000,000. Such insurance shall cover liability arising from premises operations, independent contractors, personal injury, products, and completed operations and liability assumed under an insured contract, including but not limited to the activities of Tenant, its employees and agents. Certificates or copies of said policies, naming the Landlord as an additional insured, and providing for thirty (30) days' advance notice to the Landlord before cancellation, shall be delivered to the Landlord no later than the date that Tenant begins to occupy the leased premises. A renewal certificate shall be provided to Landlord prior to expiration of any policy. (c) Tenant will not do or omit the doing of any act which would vitiate any insurance or increase the insurance rates in force upon the real estate improvements on the premises or upon any personal property of the Tenant upon which the Landlord by law or by the terms of this Lease, has or shall have a lien. (d) Tenant further agrees to comply with recommendations of Iowa Insurance Services Office and to be liable for and to promptly pay, as if current rental, any increase in insurance rates on said premises and on the building of which said premises are a part, due to increased risks or hazards resulting from Tenant's use of the premises otherwise than as herein contemplated and agreed. In addition, at each 5-year anniversary of the Start Date, Landlord shall have the option to require, by written notice to Tenant, an increase in any insurance coverage required by this Lease, but such increase in any instance shall not exceed $1,000,000. (e) INSURANCE PROCEEDS. Landlord shall settle and adjust any claim against any insurance company under its said policies of insurance for the premises and said insurance monies shall be paid to and held by the Landlord to be used in payment for cost of repairs or restoration of damaged building, if the destruction is only partial. 11. INDEMNITY. Except as to the sole negligence of the Landlord or its agents in the performance of any obligation of Landlord under this Lease, and to the extent not covered by insurance maintained by Tenant, Tenant will protect, indemnify, and save harmless the Landlord from and against any and all loss, costs, damage, and expenses of any kind whatsoever, including but not limited to attorneys' fees and expenses, occasioned by, or arising out of, any accident or other occurrence causing or inflicting injury and/or damage to any person or property, happening or done in, upon, or about the leased premises, or due directly or indirectly to the tenancy, use, or occupancy thereof, or any part thereof by the Tenant or any person claiming through or under the Tenant, including but not limited to suppliers and patrons of Tenant or persons who suffer injury, loss, or damage directly or indirectly by the acts or omissions of such persons. This indemnity is intended to apply to the premises leased by Tenant, all common or public areas used or usable by Tenant or its customers, Tenant's use of existing signage on the premises, and all activities on the premises relating to the business of Tenant. Prior to the commencement date of this Lease, Tenant has had the opportunity to test the premises for toxic or hazardous substances, mold, and other environmental matters, and Tenant agrees that the indemnities set forth in this paragraph shall include but not be limited to any claims, demands, losses, or causes of action arising from or relating to such matters. The provisions of this paragraph shall survive the expiration, abandonment, or termination of this Lease. 12. ENVIRONMENTAL. Tenant represents and agrees as follows: (i) During the Lease term, Tenant's use of the premises will not include the use of any hazardous substance. (ii) Tenant, at its sole cost and expense, agrees to remediate, correct, or remove from the premises any contamination of property caused by any hazardous substances which have been used or permitted by Tenant on the premises during any term of this Lease. Remediation, correction, or removal shall be in a safe and reasonable manner, and in conformance with all applicable laws, rules, and regulations. Tenant reserves all rights allowed by law to seek indemnity of contribution from any person, other than Landlord, who is or may be liable for any such cost and expense. (iii) Tenant agrees to indemnify, defend, and hold Landlord harmless from and against all claims, causes of action, damages, loss, costs, expense, penalties, fines, lawsuits, liabilities, attorney fees, and engineering and consulting fees arising out of or in any manner connected with hazardous substances, which are caused or created by Tenant on or after the date of this Lease and during any term of this Lease, including but not limited to any diminution in value of any leased premises that may result from the foregoing. This indemnity shall survive the expiration, abandonment, or termination of this Lease for any reason. 3 13. FIRE AND CASUALTY. (a) PARTIAL DESTRUCTION OF PREMISES. In the event of a partial destruction or damage of the leased premises which causes a business interference by preventing the conduct of a normal business operation, and which damage is reasonably repairable within sixty (60) days after its occurrence, this Lease shall not terminate but the rent for the leased premises shall abate during the time of such business interference. In the event of partial destruction, Landlord shall repair such damages within sixty (60) days of its occurrence unless prevented from so doing by acts of God, the elements, the public enemy, strikes, riots, insurrection, government regulations, municipal ordinances, labor, material or transportation shortages, or other causes beyond Landlord's reasonable control. (b) ZONING. If the zoning ordinance of the municipality in which this property is located makes it impossible for Landlord, using diligent and timely effort, to obtain necessary permits and to repair and/or rebuild so that Tenant is able to conduct its business on these premises, then such partial destruction shall be treated as a total destruction as in the next paragraph provided. (c) TOTAL DESTRUCTION OF BUSINESS USE. In the event of a destruction or damage of the leased premises, including the parking area (if a parking area is a part of the subject matter of this Lease), so that Tenant is not able to conduct its business on the premises, and which damages cannot be repaired within sixty (60) days, this Lease may be terminated at the option of either the Landlord or Tenant. Such termination in such event shall be effected by written notice of one party to the other, within twenty (20) days after such destruction. Tenant shall surrender possession within ten (10) days after such notice issues and, each party shall be released from all future obligations hereunder, Tenant paying rental and triple net charges pro rata only to the date of such destruction. In the event of such termination of this Lease, Landlord at its option may rebuild or not, according to its own wishes and needs. 13.1 LOSS OF LICENSE. If Tenant fails to obtain, renew, or keep in force for any reason whatsoever, including but not limited to the suspension, revocation, or non -renewal by governing authority, any governmental license or authorization necessary to operate its business on the premises, then Tenant's duties under this Lease shall be unaffected thereby and Tenant shall be obligated to continue its performance hereunder. 14. CONDEMNATION. (a) DISPOSITION OF AWARDS. Should the whole or any part of the demised premises be condemned or taken by a competent authority for any public or quasi -public use or purpose, each party shall be entitled to retain, as its own property, any award payable to it. Or in the event that a single entire award is made on account of the condemnation, each party will then be entitled to take such proportion of said award as may be fair and reasonable. (b) DATE OF LEASE TERMINATION. If the whole of the demised premises shall be so condemned or taken, the Landlord shall not be liable to the Tenant except and as its rights are preserved as in paragraph 14(a) above. 15. TERMINATION OF LEASE; DEFAULTS OF TENANT; OTHER REMEDIES. (a) Other than termination upon expiration as set forth in paragraph 8(a) above, this Lease shall be subject to early termination as provided in this Section 15. (b) TERMINATION UPON NOTICE OF DEFAULT. Tenant shall be in default of this Lease if (i) Tenant fails to make any payment of rental herein when such payment becomes due, (ii) Tenant breaches any other terms or provision of this Lease, (iii) Tenant defaults in payment of any separate debt obligations to Landlord or any affiliate of Landlord or breaches any other terms of a separate note or loan agreement or personal property lease with Landlord or an affiliated of Landlord, or (iv) Tenant abandons the premises by failure to engage in its usual and customary business activities on the premises for more than fifteen (15) consecutive business days. Upon occurrence of any event of default, this Lease may at the option of Landlord be canceled and forfeited, provided, however, before any such cancellation and forfeiture except as provided in 15(d) below, Landlord shall give Tenant a written notice specifying the default, or defaults, and stating that this Lease will be canceled and forfeited ten (10) days after the giving of such notice, unless such default, or defaults, are remedied within such grace period. For purposes of this paragraph, an "affiliate of Landlord" is a principal of Landlord or any company under common ownership or control with Landlord. (c) BANKRUPTCY OR INSOLVENCY OF TENANT. In the event Tenant is adjudicated a bankrupt or in the event of a judicial sale or other transfer of Tenant's leasehold interest by reason by any bankruptcy or 4 insolvency proceedings or by other operation of law, but not by death, and such bankruptcy, judicial sale, or transfer has not been vacated or set aside within ten (10) days from the giving of notice thereof by Landlord to Tenant, then and in any such events Landlord may, at its option, immediately terminate this Lease and, upon giving of ten (10) days' written notice by Landlord to Tenant, re-enter said premises, all to the extent permitted by applicable law. (d) OTHER REMEDIES. In addition to any remedies set forth in this Section 15 or otherwise available under applicable law, in the event of a default Landlord may exercise any one or more of the following remedies: (i) Declare due, sue for, and receive from Tenant the sum of all payments and other amounts then due and owing under this Lease, plus the accelerated balance of future payments; (ii) Terminate this Lease or any other agreement with Tenant; (iii) Collect from Tenant all other amounts due and owing under this Lease; (iv) Charge interest on all sums due hereunder that remain unpaid more than five days after due at the rate of 18% per annum, compounded monthly, until paid in full, but in no event more than the maximum rate permitted by law; (v) Charge an administrative late fee of $50.00 for each payment not received within five days of the due date (in addition to any applicable penalty interest), plus an additional late fee of $50.00 for each additional month that a payment is delinquent. In addition, Landlord may use any other remedies available to it under applicable law. (e) In the circumstances described in paragraphs (b)-(d) above, waiver as to any default shall not constitute a waiver of any other or subsequent default, and no delay in exercising any right or remedy shall operate as a waiver of any right or remedy or modify the terms of this Lease. Remedies will be applied cumulatively, to the extent allowed by law. Tenant agrees to pay Landlord all costs and expenses, including attorneys' fees, incurred by Landlord in exercising or attempting to exercise any of its rights or remedies or in defending against the claims of Tenant. If appropriate in the circumstances, remedies will include those available under UCC Article 9. As an additional optional procedure or as an alternative to the foregoing (and neither being exclusive of the other), Landlord may proceed as provided in paragraph 21 below. (f) The parties agree to the jurisdiction and venue of the Iowa District Court for Black Hawk County in any action to construe, interpret, or enforce this Lease. EACH PARTY HEREBY WAIVES ITS RIGHT TO A JURY TRIAL WITH RESPECT TO ANY MATTER ARISING OUT OF OR IN ANY WAY RELATED TO THIS LEASE, WHETHER DIRECTLY OR INDIRECTLY. (g) Acceptance of keys, advertising, and re -renting by the Landlord upon the Tenant's default shall be construed only as an effort to mitigate damages by the Landlord, and not as an agreement to terminate this Lease. 16. RIGHT OF EITHER PARTY TO MAKE GOOD ANY DEFAULT OF THE OTHER. If default shall be made by either party in the performance of, or compliance with, any of the terms, covenants, or conditions of this Lease, and such default shall have continued for thirty (30) days after written notice thereof from one party to the other, the person aggrieved, in addition to all other remedies now or hereafter provided by law, may, but need not, perform such term, covenant, or condition, or make good such default, and any amount advanced shall be repaid forthwith on demand, together with interest at the rate of 12% per annum, compounded monthly, from the date of advance. Landlord may also add a ten percent (10%) surcharge. 17. MECHANIC'S LIENS. Neither the Tenant nor anyone claiming by, through, or under the Tenant, shall have the right to file or place any mechanic's lien or other lien of any kind or character whatsoever upon said premises or upon any building or improvement thereon, or upon the leasehold interest of the Tenant therein, and notice is hereby given that no contractor, subcontractor, or anyone else who may furnish any material, service, or labor for any building, improvements, alteration, repairs or any part thereof, shall at any time be or become entitled to any lien thereon, and for the further security of the Landlord, the Tenant covenants and agrees to give actual notice thereof in advance to any and all contractors and subcontractors who may furnish or agree to furnish any such material, service, or labor. Before opening the establishment for business, Tenant shall provide to Landlord lien waivers from any contractors, subcontractors, and materialmen showing payment in full for all goods and labor provided for improvements to the premises. 18. LANDLORD'S LIEN AND SECURITY INTEREST. Said Landlord shall have, in addition to the lien given by law, a security interest as provided by the Uniform Commercial Code as codified in the State of Iowa upon all tangible personal property, including but not limited to all furniture, fixtures, equipment, and inventory, and all substitutions, replacements, accessories, and accessions thereto and thereof, kept and used on the leased premises by Tenant, whether or not any of the foregoing are the subject of separate financing arrangements between Landlord and Tenant. Tenant also grants to Landlord a security interest in the name chosen by Tenant for its business establishment and all related trade names, trademarks, and service marks, whether or not same 5 are the subject to any federal or state registration of any kind. Tenant agrees to cooperate in good faith to enable Landlord to perfect any security interest granted hereunder and to establish a first priority position as against any other person claiming a consensual or non-consensual lien in the property of Tenant. Landlord may proceed at law or in equity with any remedy provided by law or by this Lease for the recovery of rent or for termination of this Lease because of Tenant's default in its performance. 19. SUBSTITUTION OF EQUIPMENT, MERCHANDISE. ETC. The Tenant shall have the right, from time to time during the term of this Lease or renewal thereof, to sell or otherwise dispose of any personal property of the Tenant (but not the personal property of the Landlord) situated on the leased premises, when in the judgment of the Tenant it shall have become obsolete, outworn, or unnecessary in connection with the operation of Tenant's business on the leased premises; provided, however, that the Tenant shall, in such instance and at its own expense, substitute for such items of personal property so sold or otherwise disposed of, a new or other item in substitution thereof, in like or greater value and adopted to the affixed operation of the business upon the leased premises (unless no substituted article or item is necessary). 20. RIGHTS CUMULATIVE. The various rights, powers, options, elections, and remedies of either party as provided in this Lease shall be construed as cumulative and no one of them as exclusive of the others or exclusive of any rights, remedies, or priorities allowed either party by law, and shall in no way affect or impair the right of either party to pursue any other equitable or legal remedy to which either party may be entitled as long as any default remains in any way unremedied, unsatisfied, or undischarged. 21. NOTICES AND DEMANDS. Notices as provided for in this Lease shall be given to the respective parties hereto at the respective addresses designated on page one of this Lease unless either party notifies the other, in writing, of a different address. Without prejudice to any other method of notifying a party in writing or making a demand or other communication, such message shall be considered given under the terms of this Lease when sent, addressed as above designated, postage prepaid, by registered or certified mail, return receipt requested, by the United States mail and so deposited in a United States mail box. 22. BINDING EFFECT. Each and every covenant and agreement herein contained shall extend to and be binding upon the respective heirs, personal representatives, successors, and assigns of the parties hereto; except that if any part of this Lease is held in joint tenancy, the successor in interest shall be the surviving joint tenant. 23. CHANGES TO BE IN WRITING. None of the covenants, provisions, terms, or conditions of this Lease to be kept or performed by Landlord or Tenant shall be in any manner modified, waived, or abandoned, except by a written instrument duly signed by the parties and delivered to the Landlord and Tenant. This Lease contains the entire agreement of the parties and supersedes any and all discussions, negotiations, understandings, or agreements pertaining to the subject matter hereof. 24. CONSTRUCTION. Words and phrases herein, including acknowledgment hereof, shall be construed as in the singular or plural number, and as masculine, feminine, or neuter, according to the context. 25. OTHER. Tenant agrees to the following additional terms: (a) PARKING. No parking is provided to Tenant, its employees, agents, or patrons, in connection with this Lease. Tenant will prohibit unreasonable on -street parking within one block of premise by Tenant and staff. (b) LEASED AREA. The square footage of the leased premises set forth above is an estimate and is not based on actual measurements. The parties agree that such square footage is satisfactory for purposes of this Lease, and each of them waives any right to recoupment, offset, or other damages for rent lost in the event the actual square footage of the leased premises is later determined by measurement to differ from the square footage set forth above. (c) TRASH STORAGE AND REMOVAL. Tenant is solely responsible for contracting with, and bearing the cost of, private or city sanitation services for proper storage and at least weekly removal of all trash, garbage, debris, and other refuse resulting from its business operations. The location of trash containers is subject to the prior approval of Landlord and may be required by Landlord to be collocated with neighboring business for aesthetic and trash management reasons. Trash containers shall be shielded from view and all such containers and the areas around them shall be kept neat and clean at all times, including periodic power washing and painting as necessary. 6 JSA Development, LLC - Abigail Miller (d) LEASEHOLD IMPROVEMENTS. The parties agree that the leased premises are in an older historic building and are in need of substantial improvements. Tenant accepts the leased premises "AS IS", subject to Landlord's continued efforts to repair, renovate, and remodel the leased premises in accordance with plans to which the parties have given their mutual consent. (e) TAX BENEFITS. Landlord may, for its own benefit, apply for or utilize available real property tax abatements and/or rebates, historic tax or other credits, deductions, depreciation, or other concessions or incentives with respect to the premises, if such benefits are available. The applications may require documentation regarding the cost of improvements made to the premises and the dates of construction or completion. Upon request by Landlord, Tenant shall promptly provide copies of all documents or other information necessary for Landlord to file a complete application to obtain the maximum benefit reasonably available. Tenant shall ensure that all improvements and renovations that it undertakes or causes to be undertaken on the property are in compliance with the regulatory requirements of the National Park Service and any other federal or state authority that pertain to historic buildings. Tenant agrees to be liable to Landlord should any improvements or renovations cause the loss of any tax credits. The tax benefits described in this paragraph are intended to be solely for the benefit of the Landlord, and Tenant hereby waives any claim or right to such benefits or any part thereof, regardless of how such benefits are derived. (f) OPTION TO RENEW. Tenant may renew this Lease for two additional terms of one year by giving Landlord written notice of its intent to renew at least ninety (90) days before expiration of the immediately preceding term. The renewal shall be on the same terms and conditions as the original term, except that the Base Rent shall be increased by 3% to $1,229.32 for the first renewal starting October 1, 2026 and $1,266.20 for the second renewal starting October 1, 2027. (g) EQUIPMENT AND FURNISHINGS. During the term of this Lease, Landlord agrees to make available for Tenant's use all equipment, furnishings and fixtures located on the premises that are suitable for operation of a retail space, including those items listed on Exhibits B and C attached hereto. Tenant shall be solely responsible for the repair, care and maintenance of same. All equipment, furniture and furnishings are provided for Tenant's use on an AS -IS, WHERE -IS basis, without any representation or warranty as to title, condition, operability, suitability for any particular use, or continued availability through the full lease term. IN WITNESS WHEREOF, the parties hereto have executed this Business Property Lease by their duly authorized representatives as of the date first written above. LANDLORD TENANT City of Waterloo, Iowa By: 46�' 7/24, By: 62uerctuz 1-tat 7